1. Government Furnished Equipment (GFE) Overview
Edlouie S. Ortega, MSM, CDFM
Equipment and Technology Management
Medical Equipment and Logistics Solutions
Naval Medical Logistics Command

2. Assets (Financial World)
DoD Concerns
Assets (Financial World)
PP&E
Inventory/OM&S
Real Property
Personal Property
Repairables
Consumables
Internal Use Software
Land
2017: DoD audit readiness goal!
Facilities
Equipment
2017
Military Equipment
Buildings
Structures
General Purpose Equipment
Linear

3. Distilled into four (4) types under the Federal Acquisition Regulation
Assets
PP&E
Inventory/OM&S
Real Property
Personal Property
Repairables
Consumables
Internal Use Software
Land
Distilled into four (4) types under the Federal Acquisition Regulation
Facilities
Equipment
Military Equipment
Buildings
Structures
General Purpose Equipment
Linear

4. 4 1. Equipment (for use or repair) 2. Special Tooling
Assets
Personal Property 1
Equipment
Special Tooling
Special Test Equip.
Material 2 3 4
For Repair
1. Equipment (for use or repair)
2. Special Tooling
3. Special Test Equipment
4. Material
For “Use” 4
types of contract property

5. Cost of an Airplane The Airframe is the price on the contract
CAP transferred from Developmental Contract
The engines provided as GFE from a different contractor
GFE parts requisitioned from DLA

6. Cost of Care Output: Image for Clinical Review Repair Parts/
Special Tooling
Network Switches
Network
Acquisition Devices
Network
Gateway
Network
Switches
Maintenance
Monitoring
System

7. Baseline information needed
Inadequate data
No standard method
Do we know:
What is GFE; where it is; and what its worth
Why?
Contracts (especially legacy contracts) do not always contain GFE listings; listings are often ad-hoc and inaccurate
DoD Component past practice was to “zero out” equipment (GFE) records
Little rigor in evaluating contractor need for GFE

8. The Latest GFE Memo… OSD memorandum issued on January 7, 2012 Goals
Promote the current clause requirements
Demonstrate the relationship between the clauses, the DoD policy, and the system capabilities (IUID Registry)
Get a starting point for equipment already used by contractors
Laptop Computers
Offsite equipment w/no gov’t representative
Increase visibility and awareness of the “mystery” surrounding GFE
Highlight the criticality to auditability

9. The Memo Explained Based on existing policy
NO NEW POLICY is in this memo
Requires HQ Level coordination
Each DoD Component will take a unified approach
Standardizes DoD practices
Eliminates ad-hoc data calls to contractors
Promotes a common enterprise approach
Use of IUID Registry as master data source for GFE
Single face to industry
Consistent with DoD Instruction

10. OSD Methodology Highlights
Create integrated Project Team to execute methodology
Program Managers
Acquisition Managers
Accountable Property Officers, etc.
Use IUID Registry to interface with Contractors

11. OSD Methodology Highlights
Leverage DCMA’s Property Management System Analysis (PMSA) to validate data:
“Adequate” record rating & “Low” risk = accept contractor data
“Inadequate” record rating & “High” risk = Ctr perform wall to wall inventory to validate data, data validated independently
“Inadequate” record rating & “Moderate” risk = evaluate Corrective Action Plan and use sampling techniques to validate data
Emphasize focus on improving business processes to improve accountability for GFE going forward
Modify contracts to list GFE to bring contracts into FAR, DFARS compliance
Amended contracts to serve as supporting documentation for government’s rights/obligations to equipment

12. OSD Expectations Contracting Officers (Buying Commands)
Use the opportunity to update property clauses (FAR and DFARS) and other terms and conditions
Modify contracts with appropriate property info per PGI 245
Program Offices
Work with Accountable Property Officers to establish needed property records based on risk assessments of contractors
Contractors
Report property per contract terms; utilize the IUID Registry as appropriate

13. DOD Recommended Step by Step
First [immediate]:
Stop the bleeding.
No GFE should be furnished without PCO first meeting PGI
Second: [short term]:
Identify contracts coming to completion within one year
Third: [intermediate]:
Identify contracts going beyond one year
Modify contracts as needed to add GFE listing
Fourth: [long term]:
Update local policy and procedures; sustainment & compliance

14. “How to account for GFE in DMLSS” HM1 Sherwin Villagracia
DEMONSTRATION
“How to account for GFE in DMLSS”
HM1 Sherwin Villagracia

15. QUESTIONS?
(301)

16. Related Sessions
LO-M-1-F Business Objects Training for Equipment Managers
LO-T-3-B Equipment Management Self Assessment - Conduct Your Own LAV
LO-W-3-C Automatic Identification Technologies (AIT) /IUID and RTLS
LO-W-3-D Equipment Management Process
LO-W-3-E Annual Inventory Process and Requirements